Tuesday, December 21, 2010
An Idea for Student Loan Reform
In the recent tax bill signed by President Obama, there were $8 billion in earmarks.
My suggestion is for members of Congress to forgo the earmarks and use the money to buyout all existing loans and through the U.S. Department of Education restructure the loans to the original amount of the loan minus payments made to the principal and adding predetermined accrued simple interest since the time the loan was granted and set the loan at simple interest high enough to make the program self supporting and low enough to make higher payments on the principal.
This will result in a much better approval rate for Congress, be beneficial to constituents and improve the economy by having the loans repaid much earlier and making it possible for the purchase of luxury items.
A CALL TO ACTION
I ask all my blogging friends to send messages to their Senators and Representatives. Click here for a list of addresses for your Congressperson.